The Bitcoin community is buzzing with a technical debate that could be a game changer: Covenants. Putting aside short-term price volatility, what's being discussed is the future of programmability on the number one blockchain.
In simple terms, this mechanism allows for conditions to be placed on how UTXO will be spent in the future. It's not just about sending to address A or B anymore; it could be bound to go into a vault, go through multi-sig, or comply with a certain structure.
Currently, there are at least 12 competing proposals, from OP_CTV, OP_TXHASH to a revival of OP_CAT. Each has its own approach. For traders, this opens up a long-term narrative: Bitcoin could have DEX, more sophisticated hack-proof vaults, and a more flexible Lightning Network.
However, the road to consensus is still long. The Bitcoin community is notoriously conservative. They weigh carefully between innovation and security risks.
What to watch: Which proposal will rise to lead? Part 2 of the report will dive deep into each proposal. Keep an open mind, but don’t rush to dream about an "Ethereum on Bitcoin" just yet. This is a long game.
#BTC #Côngnghệ #Bitcoin #Covenants
In simple terms, this mechanism allows for conditions to be placed on how UTXO will be spent in the future. It's not just about sending to address A or B anymore; it could be bound to go into a vault, go through multi-sig, or comply with a certain structure.
Currently, there are at least 12 competing proposals, from OP_CTV, OP_TXHASH to a revival of OP_CAT. Each has its own approach. For traders, this opens up a long-term narrative: Bitcoin could have DEX, more sophisticated hack-proof vaults, and a more flexible Lightning Network.
However, the road to consensus is still long. The Bitcoin community is notoriously conservative. They weigh carefully between innovation and security risks.
What to watch: Which proposal will rise to lead? Part 2 of the report will dive deep into each proposal. Keep an open mind, but don’t rush to dream about an "Ethereum on Bitcoin" just yet. This is a long game.
#BTC #Côngnghệ #Bitcoin #Covenants